Discussions between London-based Inspired Entertainment and PlayAGS, Inc. on a possible acquisition of AGS by Inspired have concluded without a transaction, according to a gaming analyst close to the negotiations.
David Bain of B Riley Securities told CDC Gaming Reports that the two parties have concluded discussions, after AGS rejected Inspired’s offer of $370 million, or $10 per share, in August, but said the parties would continue negotiations.
“We believe the primary reason a transaction did not occur was price,” Bain said. “Inspired Entertainment investor focus should return to its asset-light weighted mix/growth and near-term catalysts, including forward iLottery contracts, in our view.”
AGS stock was down 20.2 percent at market close after the announcement. Bain told CDC that much of the recent buying activity in AGS was “in anticipation of a potential sale of the company above $10 per share.”
Bain added that he believes AGS is undervalued and will have brighter prospects as “value previously unrecognized by investors was highlighted in the overall period of acquisition discussion.”
